I think he may have misspelled - manipulation.

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TrayonRanger

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16/08/24

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Post #: 75242789
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Originally posted by WhatiFOnly: ↑

The leaders of key mining peak bodies say the case for Australia’s upstream lithium producers to receive royalty relief is growing fast, but the helping hand might be selective. Association of Mining and Exploration Companies chief executive Warren Pearce told The West Australian talks with the group’s members and the State Government about the possibility of relief for lithium miners was progressing. “With market conditions continuing to deteriorate it’s becoming clearer that some form of assistance may be required,” he said. “This could be on a case-by-case, project-by-project basis.” Mr Pearce’s stance has evolved since last week when he stated the lithium industry was not pleading for assistance but pointed out that royalty support might be needed “if global market conditions continue to deteriorate”. Since those comments, the prevailing price of spodumene concentrate has plunged from about $US870 a tonne to $US810/t on Friday according analysis by the Shanghai Metals Market, scuppering any hopes the market had found a stable price floor. The price was more than $US3200/t a year ago but is now currently languishing at lows not experienced since August 2021. Chamber of Minerals and Energy WA chief executive Rebecca Tomkinson also alluded to negotiations with government becoming increasingly substantive in recent days. “Lithium prices have continued to soften recently and the outlook for coming years is now ‘lower for longer’, which has prompted further discussions with government on measures to keep WA’s lithium and broader minerals sector resilient,” she told The West. A spokesman for Mines Minister David Michael is yet to provide a comment about the latest discussions. Tony Ottaviano — the boss of Australia’s newest lithium miner Liontown Resources — last Tuesday urged the State Government to consider royalty relief, and to consider it quickly. But Mr Michael the next day poured cold water on any royalty breaks being announced imminently. “For the time being, we’ll discuss options with both industry and, importantly, the peak bodies that I regularly talk to,” he said last Wednesday. If relief were to eventuate it would likely be in a similar vein to the 50 per cent royalty rebate on nickel sales introduced in WA earlier this year. A 50 per cent rebate was provided to all of the State’s lithium miners in 2020 as prices collapsing to $US400/t claimed the scalps of two producers — Altura Mining and Alita Resources. However, the current situation is more complicated, which The West understands is why a more selective approach to royalty relief is being considered. The disparity between the cost bases of various WA lithium operations has grown over the past few years and there are still multiple mines keeping their heads above water at current prices — like Talison Lithium’s Greenbushes and Pilbara Minerals’ Pilgangoora. Greenbushes, in WA’s South West, is the lowest-cost operation in the State and earlier this year analysts estimated the mine would be profitable even if spodumene prices fell to about $US420/t. On the other side of the coin, Liontown’s Kathleen Valley is in the red as it ramps up production, while Arcadium Lithium’s ageing Mt Cattlin is also believed to be bleeding cash in the current market. Liontown and Arcadium will not benefit from the 10 per cent production tax credits for critical mineral processors announced in the May Federal Budget, because both companies are not downstream producers in Australia.

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I think he may have misspelled - manipulation.

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I think he may have misspelled - manipulation.

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I think he may have misspelled - manipulation.

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